REDWOOD CITY, Calif.–(BUSINESS WIRE)–Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its second fiscal quarter ended September 30, 2022.
“In Q2, EA delivered strong engagement and deeply immersive experiences across our portfolio, with new EA SPORTS titles and multi-platform live services powering the business,” said CEO Andrew Wilson. “More people than ever before are turning to games as their primary platform for social connection and creativity. With EA’s unrivaled IP, talented teams, and growing player network, we are well-positioned to lead the future of entertainment.”
“Q2 was a solid quarter. We again delivered on our revenue and profit commitments, driven by our EA SPORTS portfolio and our multi-platform live services business,” said CFO Chris Suh. “With our resilient business model, disciplined execution, and healthy underlying fundamentals, we are poised to deliver long-term growth.”
Selected Operating Highlights and Metrics
- Net bookings1 for the trailing twelve months was $7.381 billion, up 4{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} year-over-year.
- Live services and other net bookings for the trailing twelve months were up 7{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} year-over-year and represent 73{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} of total net bookings.
- The EA player network grew to more than 600 million active accounts at quarter end.
- EA SPORTS™ FIFA 23 was the most successful launch in franchise history with more than 10.3 million players joining the game within the first week.
- Based on the first four weeks following launch, EA SPORTS™ FIFA 23 units (sell-through) are up 10{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} and Ultimate Team players up 6{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} on the comparable period for FIFA 22.
Selected Financial Highlights and Metrics
- Net cash (used in)/provided by operating activities was $(112) million for the quarter and $1.788 billion for the trailing twelve months.
- EA repurchased 2.6 million shares for $325 million during the quarter, bringing the total for the trailing twelve months to 10.0 million shares for $1.295 billion.
- EA paid a cash dividend of $0.19 per share during the quarter, for a total of $53 million.
Dividend
EA has declared a quarterly cash dividend of $0.19 per share of the Company’s common stock. The dividend is payable on December 21, 2022 to shareholders of record as of the close of business on November 30, 2022.
Quarterly Financial Highlights
Three Months Ended September 30, 2022
2021
(in $ millions, except per share amounts) Full game 602
617
Live services and other 1,302
1,209
Total net revenue
1,904
1,826
Net income 299
294
Diluted earnings per share 1.07
1.02
Operating cash flow (112
)
64
Value of shares repurchased 325
325
Number of shares repurchased 2.6
2.3
The following GAAP-based financial data2 and tax rate of 19{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} was used internally by company management to adjust its GAAP results in order to assess EA’s operating results:
Three Months Ended September 30, 2022 GAAP-Based Financial Data (in $ millions) Statement of Operations Acquisition-related expenses Change in deferred net revenue (online-enabled games) Stock-based
compensationTotal net revenue 1,904
–
(150
)
–
Cost of revenue 462
(39
)
–
(1
)
Gross profit 1,442
39
(150
)
1
Total operating expenses 1,015
(43
)
–
(139
)
Operating income 427
82
(150
)
140
Interest and other income (expense), net –
–
–
–
Income before provision for income taxes 427
82
(150
)
140
Number of shares used in computation: Diluted 279
Trailing Twelve Months Financial Highlights
Twelve Months Ended September 30, 2022
2021
(in $ millions) Full game 1,997
1,911
Live services and other 5,288
4,485
Total net revenue 7,285
6,396
Net income 901
785
Operating cash flow 1,788
1,416
Value of shares repurchased 1,295
1,301
Number of shares repurchased 10.0
9.5
The following GAAP-based financial data2 was used internally by company management to adjust its GAAP results in order to assess EA’s operating results. During fiscal 2022, management used a tax rate of 18{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} and in fiscal 2023 a tax rate of 19{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}.
Twelve Months Ended September 30, 2022 GAAP-Based Financial Data (in $ millions) Statement of Operations Acquisition-related expenses Change in deferred net revenue (online-enabled games) Stock-based
compensationTotal net revenue 7,285
–
96
–
Cost of revenue 1,826
(158
)
–
(6
)
Gross profit 5,459
158
96
6
Total operating expenses 4,124
(195
)
–
(513
)
Operating income 1,335
353
96
519
Interest and other income (expense), net (25
)
–
–
–
Income before provision for income taxes 1,310
353
96
519
Operating Metric
The following is a calculation of our total net bookings1 for the periods presented:
Three Months Ended Twelve Months Ended September 30, September 30, 2022
2021
2022
2021
(in $ millions) Total net revenue 1,904
1,826
7,285
6,396
Change in deferred net revenue (online-enabled games) (150
)
25
96
681
Total net bookings 1,754
1,851
7,381
7,077
Business Outlook as of November 1, 2022
Fiscal Year 2023 Expectations – Ending March 31, 2023
Financial metrics:
- Net revenue is expected to be approximately $7.550 billion to $7.750 billion.
- Change in deferred net revenue (online-enabled games) is expected to be approximately $100 million.
- Net income is expected to be approximately $871 million to $934 million
- Diluted earnings per share is expected to be approximately $3.11 to $3.34.
- Operating cash flow is expected to be approximately $1.600 billion to $1.650 billion.
- The Company estimates a share count of 280 million for purposes of calculating fiscal year 2023 diluted earnings per share.
Operational metric:
- The US dollar has strengthened since the time of our initial FY23 guidance. As a result, we now expect an FX impact of approximately ($200) million versus our initial full year net bookings guide.
- Net bookings1 is expected to be approximately $7.650 billion to $7.850 billion, up 2{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} to 4{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} year-over-year, or 6{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} to 9{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} in constant currency.
In addition, the following outlook for GAAP-based financial data2 and updated long-term tax rate of 19{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} are used internally by EA to adjust our GAAP expectations to assess EA’s operating results and plan for future periods:
Twelve Months Ending March 31, 2023 GAAP-Based Financial Data* GAAP Guidance Range Acquisition-related expenses Change in deferred net revenue (online-enabled games) Stock-based compensation (in $ millions) Total net revenue 7,550 to 7,750 –
100
–
Cost of revenue 1,845 to 1,890 (125
)
–
(5
)
Operating expense 4,245 to 4,295 (155
)
–
(565
)
Income before provision for income taxes 1,452 to 1,556 280
100
570
Net income 871 to 934 Number of shares used in computation: Diluted shares 280
* The mid-point of the range has been used for purposes of presenting the reconciling items. Third Quarter Fiscal Year 2023 Expectations – Ending December 31, 2022
Financial metrics:
- Net revenue is expected to be approximately $1.825 billion to $1.925 billion.
- Change in deferred net revenue (online-enabled games) is expected to be approximately $600 million.
- Net income is expected to be approximately $120 million to $164 million.
- Diluted earnings per share is expected to be approximately $0.43 to $0.59.
- The Company estimates a share count of 279 million for purposes of calculating third quarter fiscal 2023 diluted earnings per share.
Operational metric:
- Net bookings1 is expected to be approximately $2.425 billion to $2.525 billion.
In addition, the following outlook for GAAP-based financial data2 and updated long-term tax rate of 19{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} are used internally by EA to adjust our GAAP expectations to assess EA’s operating results and plan for future periods:
Three Months Ending December 31, 2022 GAAP-Based Financial Data* GAAP Guidance Range Acquisition-related expenses Change in deferred net revenue (online-enabled games) Stock-based compensation (in $ millions) Total net revenue 1,825 to 1,925 –
600
–
Cost of revenue 560 to 580 (30
)
–
–
Operating expense 1,080 to 1,090 (35
)
–
(150
)
Income before provision for income taxes 184 to 253 65
600
150
Net income 120 to 164 Number of shares used in computation: Diluted shares 279
* The mid-point of the range has been used for purposes of presenting the reconciling items. Conference Call and Supporting Documents
Electronic Arts will host a conference call on November 1, 2022 at 2:00 pm PT (5:00 pm ET) to review its results for the second quarter ended September 30, 2022 and its outlook for the future. During the course of the call, Electronic Arts may disclose material developments affecting its business and/or financial performance. Listeners may access the conference call live through the following dial-in number (888) 330-2446 (domestic) or (240) 789-2732 (international), using the conference code 5939891 or via webcast at EA’s IR Website at http://ir.ea.com.
EA has posted a slide presentation with a financial model of EA’s historical results and guidance on EA’s IR Website. EA will also post the prepared remarks and a transcript from the conference call on EA’s IR Website.
A dial-in replay of the conference call will be available until November 15, 2022 at (800) 770-2030 (domestic) or (647) 362-9199 (international) using pin code 5939891. An audio webcast replay of the conference call will be available for one year on EA’s IR Website.
Forward-Looking Statements
Some statements set forth in this release, including the information relating to EA’s expectations under the heading “Business Outlook as of November 1, 2022” and other information regarding EA’s fiscal 2023 expectations contain forward-looking statements that are subject to change. Statements including words such as “anticipate,” “believe,” “expect,” “intend,” “estimate,” “plan,” “predict,” “seek,” “goal,” “will,” “may,” “likely,” “should,” “could” (and the negative of any of these terms), “future” and similar expressions also identify forward-looking statements. These forward-looking statements are not guarantees of future performance and reflect management’s current expectations. Our actual results could differ materially from those discussed in the forward-looking statements.
Some of the factors which could cause the Company’s results to differ materially from its expectations include the following: sales of the Company’s products and services; the Company’s ability to develop and support digital products and services, including managing online security and privacy; outages of our products, services and technological infrastructure; the Company’s ability to manage expenses; the competition in the interactive entertainment industry; governmental regulations; the effectiveness of the Company’s sales and marketing programs; timely development and release of the Company’s products and services; the Company’s ability to realize the anticipated benefits of, and integrate, acquisitions; the consumer demand for, and the availability of an adequate supply of console hardware units; the Company’s ability to predict consumer preferences among competing platforms; the Company’s ability to develop and implement new technology; foreign currency exchange rate fluctuations; economic and geopolitical conditions; changes in our tax rates or tax laws; and other factors described in Part II, Item 1A of Electronic Arts’ latest Quarterly Report on Form 10-Q under the heading “Risk Factors”, as well as in other documents we have filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2022.
These forward-looking statements are current as of November 1, 2022. Electronic Arts assumes no obligation to revise or update any forward-looking statement for any reason, except as required by law. In addition, the preliminary financial results set forth in this release are estimates based on information currently available to Electronic Arts.
While Electronic Arts believes these estimates are meaningful, they could differ from the actual amounts that Electronic Arts ultimately reports in its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2022. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-Q for the fiscal quarter ended September 30, 2022.
About Electronic Arts
Electronic Arts (NASDAQ: EA) is a global leader in digital interactive entertainment. The Company develops and delivers games, content and online services for Internet-connected consoles, mobile devices and personal computers.
In fiscal year 2022, EA posted GAAP net revenue of approximately $7 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality brands such as EA SPORTS™ FIFA, Battlefield™, Apex Legends™, The Sims™, Madden NFL, Need for Speed™, Titanfall™, Plants vs. Zombies™ and F1®. More information about EA is available at www.ea.com/news.
EA SPORTS, Battlefield, Need for Speed, Apex Legends, The Sims, Titanfall and Plants vs. Zombies are trademarks of Electronic Arts Inc. STAR WARS © & TM 2015 Lucasfilm Ltd. All rights reserved. John Madden, NFL, FIFA and F1 are the property of their respective owners and used with permission.
1 Net bookings is defined as the net amount of products and services sold digitally or sold-in physically in the period. Net bookings is calculated by adding total net revenue to the change in deferred net revenue for online-enabled games.
2 For more information about the nature of the GAAP-based financial data, please refer to EA’s Form 10-K for the fiscal year ended March 31, 2022.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(in $ millions, except per share data)
Three Months Ended
September 30,
Six Months Ended
September 30,
2022
2021
2022
2021
Net revenue
1,904
1,826
3,671
3,377
Cost of revenue
462
494
776
809
Gross profit
1,442
1,332
2,895
2,568
Operating expenses:
Research and development
565
553
1,137
1,068
Marketing and sales
233
233
467
423
General and administrative
174
176
341
345
Amortization and impairment of intangibles
43
30
82
70
Total operating expenses
1,015
992
2,027
1,906
Operating income
427
340
868
662
Interest and other income (expense), net
—
(14)
(5)
(28)
Income before provision for income taxes
427
326
863
634
Provision for income taxes
128
32
253
136
Net income
299
294
610
498
Earnings per share
Basic
1.08
1.03
2.19
1.75
Diluted
1.07
1.02
2.18
1.73
Number of shares used in computation
Basic
278
285
279
285
Diluted
279
287
280
288
Results (in $ millions, except per share data)
The following table reports the variance of the actuals versus our guidance provided on August 2, 2022 for the three months ended September 30, 2022 plus a comparison to the actuals for the three months ended September 30, 2021.
Three Months Ended September 30,
2022 Guidance
(Mid-Point)
Variance
2022
Actuals
2021
Actuals
Net revenue
Net revenue
1,875
29
1,904
1,826
GAAP-based financial data
Change in deferred net revenue (online-enabled games)1
(125
)
(25
)
(150
)
25
Cost of revenue
Cost of revenue
474
(12
)
462
494
GAAP-based financial data
Acquisition-related expenses
(30
)
(9
)
(39
)
(22
)
Stock-based compensation
(2
)
1
(1
)
(2
)
Operating expenses
Operating expenses
1,039
(24
)
1,015
992
GAAP-based financial data
Acquisition-related expenses
(40
)
(3
)
(43
)
(30
)
Stock-based compensation
(148
)
9
(139
)
(147
)
Income before tax
Income before tax
356
71
427
326
GAAP-based financial data
Acquisition-related expenses
70
12
82
52
Change in deferred net revenue (online-enabled games)1
(125
)
(25
)
(150
)
25
Stock-based compensation
150
(10
)
140
149
Tax rate used for management reporting
19
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
19
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
18
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
Earnings per share
Basic
0.83
0.25
1.08
1.03
Diluted
0.82
0.25
1.07
1.02
Number of shares used in computation
Basic
279
(1
)
278
285
Diluted
281
(2
)
279
287
1The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(in $ millions)
September 30, 2022
March 31, 20222
ASSETS
Current assets:
Cash and cash equivalents
1,539
2,732
Short-term investments
335
330
Receivables, net
919
650
Other current assets
649
439
Total current assets
3,442
4,151
Property and equipment, net
531
550
Goodwill
5,375
5,387
Acquisition-related intangibles, net
811
962
Deferred income taxes, net
2,395
2,243
Other assets
525
507
TOTAL ASSETS
13,079
13,800
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
136
101
Accrued and other current liabilities
1,034
1,388
Deferred net revenue (online-enabled games)
1,391
2,024
Total current liabilities
2,561
3,513
Senior notes, net
1,879
1,878
Income tax obligations
478
386
Deferred income taxes, net
1
1
Other liabilities
362
397
Total liabilities
5,281
6,175
Stockholders’ equity:
Common stock
3
3
Retained earnings
7,658
7,607
Accumulated other comprehensive income
137
15
Total stockholders’ equity
7,798
7,625
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
13,079
13,800
2Derived from audited consolidated financial statements.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Cash Flows
(in $ millions)
Three Months Ended
September 30,
Six Months Ended
September 30,
2022
2021
2022
2021
OPERATING ACTIVITIES
Net income
299
294
610
498
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation, amortization, accretion and impairment
127
94
241
199
Stock-based compensation
140
149
265
274
Change in assets and liabilities
Receivables, net
(346
)
(458
)
(276
)
(446
)
Other assets
(10
)
23
(25
)
(51
)
Accounts payable
69
61
53
42
Accrued and other liabilities
(164
)
52
(269
)
(250
)
Deferred income taxes, net
(70
)
(168
)
(156
)
(140
)
Deferred net revenue (online-enabled games)
(157
)
17
(633
)
(205
)
Net cash provided by (used in) operating activities
(112
)
64
(190
)
(79
)
INVESTING ACTIVITIES
Capital expenditures
(53
)
(43
)
(112
)
(87
)
Proceeds from maturities and sales of short-term investments
79
621
166
1,128
Purchase of short-term investments
(80
)
(84
)
(173
)
(369
)
Acquisitions, net of cash acquired
—
(1,405
)
—
(3,394
)
Net cash used in investing activities
(54
)
(911
)
(119
)
(2,722
)
FINANCING ACTIVITIES
Proceeds from issuance of common stock
43
41
44
41
Cash dividends paid
(53
)
(48
)
(106
)
(97
)
Cash paid to taxing authorities for shares withheld from employees
(13
)
(16
)
(117
)
(121
)
Repurchase and retirement of common stock
(325
)
(325
)
(645
)
(650
)
Net cash used in financing activities
(348
)
(348
)
(824
)
(827
)
Effect of foreign exchange on cash and cash equivalents
(29
)
(13
)
(60
)
(2
)
Change in cash and cash equivalents
(543
)
(1,208
)
(1,193
)
(3,630
)
Beginning cash and cash equivalents
2,082
2,838
2,732
5,260
Ending cash and cash equivalents
1,539
1,630
1,539
1,630
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions, except per share data)
Q2
Q3
Q4
Q1
Q2
YOY {797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
FY22
FY22
FY22
FY23
FY23
Change
Net revenue
Net revenue
1,826
1,789
1,825
1,767
1,904
4{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
GAAP-based financial data
Change in deferred net revenue (online-enabled games)1
25
788
(74
)
(468
)
(150
)
Gross profit
Gross profit
1,332
1,158
1,406
1,453
1,442
8{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
Gross profit (as a {797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} of net revenue)
73
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
65
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
77
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
82
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
76
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
GAAP-based financial data
Acquisition-related expenses
22
44
45
30
39
Change in deferred net revenue (online-enabled games)1
25
788
(74
)
(468
)
(150
)
Stock-based compensation
2
1
2
2
1
Operating income
Operating income
340
102
365
441
427
26{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
Operating income (as a {797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} of net revenue)
19
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
6
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
20
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
25
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
22
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
GAAP-based financial data
Acquisition-related expenses
52
105
97
69
82
Change in deferred net revenue (online-enabled games)1
25
788
(74
)
(468
)
(150
)
Stock-based compensation
149
129
125
125
140
Net income
Net income
294
66
225
311
299
2{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
Net income (as a {797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} of net revenue)
16
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
4
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
12
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
18
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
16
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
GAAP-based financial data
Acquisition-related expenses
52
105
97
69
82
Change in deferred net revenue (online-enabled games)1
25
788
(74
)
(468
)
(150
)
Stock-based compensation
149
129
125
125
140
Tax rate used for management reporting
18
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
18
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
18
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
19
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
19
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
Diluted earnings per share
1.02
0.23
0.80
1.11
1.07
5{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
Number of shares used in computation
Basic
285
283
281
279
278
Diluted
287
285
283
281
279
1The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions)
Q2
Q3
Q4
Q1
Q2
YOY {797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
FY22
FY22
FY22
FY23
FY23
Change
QUARTERLY NET REVENUE PRESENTATIONS
Net revenue by composition
Full game downloads
337
400
312
237
328
(3
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b})
Packaged goods
280
216
126
104
274
(2
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b})
Full game
617
616
438
341
602
(2
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b})
Live services and other
1,209
1,173
1,387
1,426
1,302
8
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
Total net revenue
1,826
1,789
1,825
1,767
1,904
4
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
Full game
34
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
34
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
24
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
19
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
32
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
Live services and other
66
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
66
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
76
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
81
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
68
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
Total net revenue {797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
100
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
100
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
100
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
100
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
100
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
GAAP-based financial data
Full game downloads
35
179
(103
)
(111
)
17
Packaged goods
44
105
(68
)
(65
)
16
Full game
79
284
(171
)
(176
)
33
Live services and other
(54
)
504
97
(292
)
(183
)
Total change in deferred net revenue (online-enabled games) by composition1
25
788
(74
)
(468
)
(150
)
Net revenue by platform
Console
1,198
1,138
1,092
1,042
1,161
(3
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b})
PC & Other
377
374
420
402
423
12
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
Mobile
251
277
313
323
320
27
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
Total net revenue
1,826
1,789
1,825
1,767
1,904
4
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
GAAP-based financial data
Console
(29
)
608
(86
)
(405
)
(134
)
PC & Other
26
137
3
(54
)
8
Mobile
28
43
9
(9
)
(24
)
Total change in deferred net revenue (online-enabled games) by platform1
25
788
(74
)
(468
)
(150
)
1The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions)
Q2
Q3
Q4
Q1
Q2
YOY {797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
FY22
FY22
FY22
FY23
FY23
Change
CASH FLOW DATA
Operating cash flow
64
1,534
444
(78
)
(112
)
(275
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b})
Operating cash flow – TTM
1,416
1,826
1,899
1,964
1,788
26
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
Capital expenditures
43
48
53
59
53
23
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
Capital expenditures – TTM
148
166
188
203
213
44
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
Repurchase and retirement of common stock
325
325
325
320
325
—
Cash dividends paid
48
48
48
53
53
10
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
DEPRECIATION
Depreciation expense
39
41
42
44
45
15
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}
BALANCE SHEET DATA
Cash and cash equivalents
1,630
2,670
2,732
2,082
1,539
Short-term investments
342
346
330
334
335
Cash and cash equivalents, and short-term investments
1,972
3,016
3,062
2,416
1,874
(5
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b})
Receivables, net
1,031
965
650
579
919
(11
{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b})
STOCK-BASED COMPENSATION
Cost of revenue
2
1
2
2
1
Research and development
101
86
84
81
95
Marketing and sales
15
14
13
13
16
General and administrative
31
28
26
29
28
Total stock-based compensation
149
129
125
125
140
